diff --git a/Makefile b/Makefile
index 9ec1ad2ab1..6e925d070f 100644
--- a/Makefile
+++ b/Makefile
@@ -93,7 +93,7 @@ generate-out-test-toml:
 
 # Updates acceptance test output (integration tests, requires access)
 test-update-aws:
-	deco env run -i -n aws-prod-ucws -- go test ./acceptance -run ^TestAccept$$ -update -timeout=1h -skiplocal -v
+	deco env run -i -n aws-prod-ucws -- env DATABRICKS_TEST_SKIPLOCAL=1 go test ./acceptance -run ^TestAccept$$ -update -timeout=1h -v
 
 test-update-all: test-update test-update-aws
 
@@ -145,7 +145,7 @@ integration:
 	$(INTEGRATION)
 
 integration-short:
-	VERBOSE_TEST=1 $(INTEGRATION) -short
+	DATABRICKS_TEST_SKIPLOCAL=1 VERBOSE_TEST=1 $(INTEGRATION) -short
 
 dbr-integration:
 	DBR_ENABLED=true go test -v -timeout 4h -run TestDbrAcceptance$$ ./acceptance
diff --git a/acceptance/acceptance_test.go b/acceptance/acceptance_test.go
index 9625b88607..4e0ecc38ab 100644
--- a/acceptance/acceptance_test.go
+++ b/acceptance/acceptance_test.go
@@ -43,7 +43,6 @@ var (
 	Forcerun        bool
 	LogRequests     bool
 	LogConfig       bool
-	SkipLocal       bool
 	UseVersion      string
 	WorkspaceTmpDir bool
 	OnlyOutTestToml bool
@@ -72,7 +71,6 @@ func init() {
 	flag.BoolVar(&Forcerun, "forcerun", false, "Force running the specified tests, ignore all reasons to skip")
 	flag.BoolVar(&LogRequests, "logrequests", false, "Log request and responses from testserver")
 	flag.BoolVar(&LogConfig, "logconfig", false, "Log merged for each test case")
-	flag.BoolVar(&SkipLocal, "skiplocal", false, "Skip tests that are enabled to run on Local")
 	flag.StringVar(&UseVersion, "useversion", "", "Download previously released version of CLI and use it to run the tests")
 
 	// DABs in the workspace runs on the workspace file system. This flags does the same for acceptance tests
@@ -410,8 +408,8 @@ func getSkipReason(config *internal.TestConfig, configPath string) string {
 		config.Cloud = config.CloudSlow
 	}
 
-	if SkipLocal && isTruePtr(config.Local) {
-		return "Disabled via SkipLocal setting in " + configPath
+	if os.Getenv("DATABRICKS_TEST_SKIPLOCAL") != "" && isTruePtr(config.Local) {
+		return "Disabled via DATABRICKS_TEST_SKIPLOCAL environment variable in " + configPath
 	}
 
 	if Forcerun {